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CEAMA: Chip shortage delays launch of new consumer electronic products

CEAMA: Chip shortage delays launch of new consumer electronic products

Industry News
Sep 29,21

The domestic appliances and consumer electronics industry, is facing shortages in components such as semiconductors and chips, said industry body CEAMA.

CEAMA: Chip shortage delays launch of new consumer electronic products

Noida, UP

According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the domestic appliances and consumer electronics industry is facing shortages in components such as semiconductors and chips.

The situation may last through and stretch into 2023. Several manufacturers, using chips as inputs, are now facing bottlenecks in their capacities and expect a delay in launches of new products, said the industry body CEAMA.

Semiconductors and chips are used for manufacturing key components such as - micro controllers, optocoupler, power relay, switch, varistor, and connectors - for a range of appliances manufactured by the industry.

Chips manufacturers are also ramping up production fees, which could give an upward push to prices in the future, he added. However, he also added that the semiconductor industry is putting more capacity in place, but it will take time. The appliances price has already witnessed pressure on account of multiple macroeconomic factors like increase in commodity prices, freight rates and material shortages.

Shortage of chips, coupled with rising ferrous products, has also offset the softening of prices happening in the sector after some of the commodities like resins and chemicals have shown price corrections, said CEAMA President Kamal Nandi.

Companies are exploring a combination of technical levers (like design optimisation and value innovation), commercial levers (like hedging, dual sources and localisation), and process levers (like advance and joint planning with suppliers) to mitigate the impact, he added.

He also said that, it is a multifaceted issue with currently no sign of abating. With demand on the rise and supply likely to remain constrained, this shortage may last through 2022 and into 2023.

Source: ET Auto.com